By: Michael Miller and Samuel Robinson, December 9, 2024
Transparency in Employee Promotion & Hiring Procedures
Effective June 1, 2025, New Jersey employers will need to be more transparent in their employee promotion and hiring procedures. Under new regulations, covered employers will be required to “make reasonable efforts” in announcing, posting, or otherwise making known opportunities for promotion and job openings to all current employees within affected departments. Employer compliance with these regulations is not required when promoting an employee on an emergent basis due to an unforeseen event or if the promotion is based on experience or performance.
Further, in both internal and external job postings, covered employers will need to state the salary or a wage range, along with a description of benefits and compensation programs. Notably, employers are not prohibited from increasing wages, benefits, or compensation when offering a position to an applicant.
Which Employers Are Covered?
Covered employers include any person, company, corporation, firm, labor organization, or association with 10 or more employees over 20 calendar weeks and does business in New Jersey, employs persons within New Jersey, or takes applications for employment within New Jersey. Moreover, job placement, referral agencies, and other employment agencies are also covered by the law if they meet the above criteria.
A Growing Movement
This law is consistent with other states, such as New York, Washington, D.C., and California which have already enacted similar laws, as part of the growing movement towards pressing employers to be more transparent with promotional opportunities and compensation information. Employers should assess their current policies and practices to ensure compliance. Noncompliance with these regulations can lead to fines of $300 for a first violation and $600 for subsequent offenses.
If you have questions about how this new law affects your business or need guidance on how to comply, please contact Margolis Edelstein for assistance.
